Dongkuk Coated Metal Co. (Dongkuk CM), a subsidiary of South Korea’s Dongkuk Holdings Co., has announced its acquisition of Aju Steel Co. for 128.5 billion won (approximately US$93.4 million). This strategic move will establish Dongkuk CM as the world’s largest producer of color coated steel, boosting its annual production capacity to 1.23 million tons.
The agreement, signed on Tuesday, involves Dongkuk CM acquiring a 56.6% stake in Aju Steel, with plans to finalize the purchase by December. Specifically, Dongkuk CM will purchase a 42.5% stake from Aju Steel’s CEO, Lee Hak Yeon, for 78.5 billion won, while also acquiring 8.6 million new shares through a third-party allocation for 50 billion won.
Currently the fourth-largest domestic producer of color coated steel, Aju Steel boasts an annual production capacity of 280,000 tons. The company specializes in color coated steel sheets used in premium TVs and home appliances, which constitute 50.6% of its total sales.
This acquisition is expected to increase Dongkuk CM’s domestic market share from 29.7% to 34.4%, allowing it to surpass KG Dongbu Steel Co. as the market leader. The deal is a significant step in consolidating Dongkuk CM’s position in the global steel market.
